California Assembly Committee Approves Bill Reining in Insurance Regulators
The Life Settlements Report
By: Dealflow Media
The California Assembly insurance committee today approved a bill supported by the life settlement industry that seeks to rein in state insurance department officials from imposing rules that the settlement industry contends overstep the department’s authority.
The Life Insurance Settlement Association (LISA) has argued that emergency rules proposed by the California insurance department to enact the state’s new life settlement law exceeds the scope of the law. The life settlement law, adopted last year, takes effect July 1.
Commentary by Michael Abraham:
The problem we have at the moment is that regulators are reacting to media overhyped concerns rather than thinking for themselves. They also show little consideration for the people who need money today – the life insured! They may well use weasel words about protecting these people but the regulations themselves build in and legalize the massive fees charged by the many advisers. They need to take a new and fresh look at regulation in general. Perhaps a review of the UK rules on secondary sales of life policies might give them a clue!
Published on 06 Jul 2010 at 05:28 am
